Problem 11-37 (LO. 1, 3) Dorothy acquired a 100% interest in two passive activit

Question

Problem 11-37 (LO. 1, 3) Dorothy acquired a 100% interest in two passive activities: Activity A in January 2012 and Activity B in 2013. Through 2015, Activity A was profitable, but it produced losses of $200,000 in 2016 and $100,000 in 2017. Dorothy has passive activity income from Activity B of $20,000 in 2016 and $40,000 in 2017. After offsetting passive activity income, how much of the net losses may she deduct? If an amount is zero, enter "O". o of the net passive activity losses and has In 2016, Dorothy may deduct losses suspended. In 2017, Dorothy may deduct carried forward to 2018 of 240,000 $60,000 of the net passive activity losses and has total suspended losses

Explanation / Answer

In 2017 ,dorothy may deduct $ 40000 of net passive activity losses and has total suspended loss carried forward to 2018 of 240000   [180000prior year+ [100000-40000deduct=60000 ]current year

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